2022 Is The Last Year To Take 100% Bonus Depreciation
If you’re self employed or run a business this is for you,
2022 is the last year you can take 100% bonus depreciation. After 2022, it decreases by 20% each year until 2026 unless new laws are established.
What is bonus depreciation? Here's an example:
If you buy a car that weighs over 6,000 pounds you're eligible to write off the entire purchase price of the car in the year you buy it because it qualifies for bonus depreciation.
Here's the example with numbers:
Let's say your income for the year is $100k. If you go out and buy a $50,000 car that's over 6k lbs, you'll get a $50k tax deduction which will reduce your total taxable income to $50k. Serious tax savings.
So if you're in the market for a new car, specifically a heavy SUV or truck (must weigh over 6,000 lbs) you may want to consider buying that car before the end of this year since 2022 is the last year, as of now, that you can take this deduction 100%.
Hope this helps. If there are questions, let me know.